Pricing Your Home For Sale
As a seller, focusing on maximizing your profit rather than current market trends could cause you to miss the right buyer for your home. Overpricing your home does have consequences. Consider these “famous last words” of pricing pitfalls:
• ”Buyers who really like my home will make an offer regardless of the listing price.”
• ”I can always come down on price when an offer comes in.”
• ”My home is so much nicer than all of the others. A higher price is justified.”
• ”I don’t have to sell right away.”
• ”I want to test the market first to see what I can get.”
An asking price that is beyond market range can adversely affect the marketing of a property. Overpricing when you put your property on the market comes with clear dangers:
• The best time to capture a buyer is in the first weeks when sales professional and buyer interest is the highest. Don’t squander this critical marketing period.
• Fewer buyers are attracted, and fewer offers received.
• The property attracts “lookers” and helps competing houses look better by comparison.
• Sellers who start high and stay high can be branded as unreasonable.
• Sales professional’s enthusiasm dims on overpriced homes.
• Advertising and other marketing efforts are neutralized. Marketing time is prolonged, and initial marketing momentum is lost.
• Sales professionals and buyers tend to overlook and discount aged properties. To prevent your house from being overlooked, price it fairly to keep sales professional’ and buyers’ attention.
• If a property does sell above true market value, the bank’s valuation may not stack up and the buyers may not be able to secure a loan.
• The property may eventually sell below market value
• Aged properties draw lower offers. Early offers tend to be higher, so be sure to price carefully initially to get fair offers.
Pricing your home to its fair market value is important. To guard against overpricing, ask your sales professional to prepare a comparative market analysis (CMA) on your home. In Queensland, the law requires agents to do this. We can help you with every aspect of buying or selling your home because we’re experienced, and because we care. We will provide you with the information you need to make an educated decision.
The relationship between a home buyer or seller and their agent is based on trust, shared goals and understanding. We strive to continually improve and to do this we listen and take your needs and wants into consideration. For assistance with any of your real estate needs, please contact us, whether it’s to get started on helping you realize your goals and dreams, or just to ask a question – no pressure, no hassle, no obligation – just a friendly conversation.
We welcome the opportunity to make a difference for you.
